Harvard Business Review

OCTOBER 6, 2023

Managers tend to think about liquidity as a finance issue, but in face the behaviors of the sales and operations team — and how they communicate and work together — can have a direct affect on a company’s cash position. Following these steps can reduce a company’s working capital needs and increase earnings and cash flow.

Supply Chain 22

Supply Chain Crisis Marketing Working Capital 22

Strategy Driven

DECEMBER 14, 2020

However, if at all it does not work out and things don’t fall in place, keep an exit strategy ready to let things off and manage what has been lost. Your finances: Nothing works without investment. You need to manage your finances and be aware of all that you will have to invest in shortly.

Exit Strategy 74

Exit Strategy Finance Short-term Licensing 74

Strategy Driven

AUGUST 4, 2016

They checked out the market, discussed the business idea with friends and family and feels they can come up with enough capital to set themselves up for success. Unfortunately, often the amount of working capital needed to fund the project is simply not enough to account for all the expenses that arise with a new business.

Due Diligence 50

Due Diligence Succession Real Estate Working Capital 50

Strategy Driven

SEPTEMBER 24, 2021

Spending too much on high-end frames can overload your inventory and deplete your working capital. In choosing frames to offer, you should consider your patient demographics and the location of your practice.

Directory 93

Directory Handbook Policies Tips 93

N2Growth Blog

AUGUST 1, 2016

I started my career in purchasing; migrated to sales and marketing; moved to manufacturing, mining, and then general management in a business operating in 40 countries. billion), development and sustaining capital expenditure (reduced by a two-thirds), and divested a significant number of non-core businesses (4.7

Gordon 150

Gordon Restructuring Leadership CEO 150

Strategy Driven

JANUARY 25, 2018

People lead busy lives and if you give them a chance to be able to attend family events and doctor’s appointments around their work, you are going to gain a lot of respect from people. Give your staff a reason to want to work for you and you’ll benefit from their loyalty. Offering incentives has to be a big part of your budget.

Incentives 51

Incentives Creativity Charisma Travel 51

Harvard Business Review

JUNE 22, 2016

They enable both the buyer and supplier to improve their working capital by making it possible for the former to extend its payables and at the same time accelerate payment to the latter. The buying firm benefits through longer payables, which positively impact its working capital. FinTechs typically act like brokers.

Supply Chain 10

Supply Chain Cost of Capital Transportation Finance 10

Strategy Driven

SEPTEMBER 18, 2019

If you are operating a start-up, you may face problems with managing the cash flow of your business efficiently and may have to rely on working capital loans. Working capital loans are not utilized for long periods or the purchase of noncurrent assets due to their short repayment period.

Working Capital 11

Working Capital Credit Scoring Long-term Short-term 11

Strategy Driven

MARCH 18, 2011

Walmart wrings maximum efficiency from its supply chain by integrating four capabilities – aggressive vendor management, expert point-of-sale data analytics, superior logistics, and rigorous working-capital management – that together deliver ‘everyday low prices’ to consumers.

Resources 52

Resources Industry System Strategy 52

Harvard Business Review

NOVEMBER 23, 2010

As more people depended on him, he spent his working capital, and the business failed. When artisans have no understanding of their cash flows, they fail prey to spending a big percentage of their working capital, without meaning to, on non-business issues that usually cripple their operations.

Books 14

Books Banking Working Capital Finance 14

Harvard Business Review

SEPTEMBER 7, 2012

Heffington, working with Steve Curnutte, a restructuring advisor, realized that as new orders poured in, it became difficult to establish the true cost of fulfilling them. And, because credit was readily available to cover the growing need for working capital, it was easy to ignore the sizable number of unprofitable and late paying customers.

Metrics 8

Metrics Working Capital Restructuring Banking 8

Harvard Business Review

APRIL 9, 2015

Analyzing ROI isn’t always as simple as it sounds and there’s one mistake that many managers make: confusing cash and profit. Working capital requirements are typically built into an Excel model you’ll use to calculate ROI , so you don’t need to worry about them. Financial analysis Project management'

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

NOVEMBER 23, 2010

As more people depended on him, he spent his working capital, and the business failed. When artisans have no understanding of their cash flows, they fail prey to spending a big percentage of their working capital, without meaning to, on non-business issues that usually cripple their operations.

Books 14

Books Guidelines Banking Telecommunications 14

Harvard Business Review

DECEMBER 7, 2010

Since it's beginning in 2003, Davide Oldani's Ristorante D'O has managed to stay profitable in a sustained fashion. That's not just my opinion; D'O got a star from Michelin in 2007 and has managed to retain it every year since then. Oldani has created a Michelin restaurant for the masses by working on two fronts.

Quality 13

Quality Working Capital Price Open-book 13

Harvard Business Review

SEPTEMBER 4, 2017

The answer may be that the innovator’s dilemma is no longer the only paradox at play in innovation management. For managers of industrial-era organizations, the economics of investing in disruptive opportunities were vexing. So naturally, as a manager, you left such innovations to new entrants. The Old Dilemma.

Christensen 8

Christensen Finance Innovation B2B 8

Harvard Business Review

OCTOBER 24, 2011

The best professional managers — doing all the right things and following all the best advice — lead their companies all the way to the top of their markets in that pursuit. A string of professional managers had led the company straight off the edge of that cliff. the iPad team works on making their product the best.

Innovation 15

Innovation Christensen CFO Productivity 15

Harvard Business Review

APRIL 5, 2017

However, higher accruals can reflect either innocuous aspects of certain business models, such as in the construction industry, where the time lag between earning income and realizing cash is long, or that growing firms retain higher working capital to meet greater current and future customer demand.

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

JUNE 3, 2016

We know that when IT projects fail, it is usually not because the technology didn’t work (although this can sometimes be the case), but because the changes required at an organizational and employee level weren’t managed effectively. They often have to be made before the new digital system is introduced. In a major U.K.

Tools 8

Tools Supply Chain CRM Technology 8

Harvard Business Review

FEBRUARY 24, 2015

Conversely, the business may be an “unpolished diamond” that was neglected by its former management for too long and whose value is just waiting to be unlocked. Does the business have a complete, balanced, and cohesive management team? Are the management team and owners prepared to abandon business as usual?

Chemicals 8

Chemicals How To Kahneman Reputation 8

Harvard Business Review

JANUARY 22, 2015

This allows you to better manage operating and capital expenses. It can also improve working capital. If you can better predict consumer demand with more certainty, whether via subscription business models like Netflix or Amazon Prime, you can improve forecasting. In early 2014, Starbucks said consumers loaded $1.4

Business Model 8

Business Model Loyalty Brand Price 8

Harvard Business Review

DECEMBER 15, 2015

This is ineffective deal management, and it eventually leads to loss of positioning with customers, and, over time, the nurturing of “commodity competencies.” At that point, Alphatech’s management reassessed its strategy and sales approach. Management first evaluated who were, and who were not, good customers.

Strategy 8

Strategy Team Discount ROIC 8

Harvard Business Review

JULY 10, 2013

Sridhar had a small network management tools business that basically functioned as a highly profitable cash cow. He decided to go after Salesforce.com with a Software-as-a-Service Customer Relationship Management product at a price-point that was one sixth of what Salesforce.com, the market leader, charged. And play he did.

Incubator 8

Incubator Finance Entrepreneur Case Study 8

Harvard Business Review

SEPTEMBER 5, 2016

Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too. As a result, some governments and private foundations have introduced social impact bonds to provide the necessary working capital. Making PbR Work.

Incentives 8

Incentives Health Care Education Insurance 8

Harvard Business Review

JANUARY 10, 2013

With most high-potential ventures, however, founders must mobilize more resources than they control personally: the venture eventually will require production facilities, distribution channels, working capital, and so forth. Financing risk relates to whether external capital will be available on reasonable terms.

Definition 9

Definition Entrepreneur Tactics Business Model 9

Harvard Business Review

DECEMBER 10, 2012

The article, " Surviving Disruption ," represents our first attempt in two decades to outline the other side of disruption — how to manage legacy businesses. To survive disruption, managers of legacy businesses need to change the game. For Best Buy, turning to fight their disruptor head on is asking for swift defeat.

Price 8

Price Retail Business Model Christensen 8

Harvard Business Review

MARCH 21, 2011

And because my husband and I were the providers of working capital, I had the luxury of being cavalier. When we came to loggerheads with our partners, which we often did, because of the management and deal structure I had freely agreed to, my husband and I had little say in the critical decisions. No, no, no , I cried.

Due Diligence 14

Due Diligence Magazine SWOT Christensen 14

Harvard Business Review

MARCH 28, 2016

Both associations managed their brands and ran the clearing and settlement systems for banks that issued cards or helped merchants accept cards. These card networks were allowed to charge their members just enough to cover cost and provide working capital.

IPO 8

IPO Succession Technology Software 8

Harvard Business Review

JANUARY 22, 2013

As a result, charities and social enterprises do not have the cushion of external financing to manage their various capital requirements. Like any small business, they need working capital to balance out the peaks and troughs of their business cycle. If financing is offered by a bank, the terms are often too onerous.

Banking 8

Banking Finance Due Diligence Short-term 8

Harvard Business Review

JANUARY 9, 2013

They need new executive talent, infusions of capital, and systems capable of supporting an expanding organization. For-profit companies in the same situation can turn to a robust venture capital community that is focused on providing the management, financing and strategy that innovative companies need to scale up quickly.

Finance 8

Finance Franchising Business Model Analysis 8

Harvard Business Review

MARCH 15, 2018

This notion is reflected by statements such as “We have seen similar examples of driven, competent men who take risks and manage to make it thrive,” and “He has proven to sustain his persistence all the way.” .” In contrast, men were characterized as ambitious, risk-taking, and eager to test their ideas.

Venture Capitalist 10

Venture Capitalist Debt to Equity Ratio Real Estate Entrepreneur 10

Harvard Business Review

APRIL 4, 2016

One B2B firm client of ours has started to offer substantially longer payment terms to distributors to stimulate them to continue carrying inventory even as banks have cut working capital loans for the distributor. Russian executives have experienced multiple crises and high volatility, as well as returns to strong growth.

Depreciation 8

Depreciation B2B Price Crisis 8

Harvard Business Review

FEBRUARY 7, 2017

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. This has long seemed intuitively true to us. The returns to society and the overall economy were equally impressive.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

FEBRUARY 17, 2012

As product is sold, some of the initial working capital that SHE puts up is paid back, with the entrepreneurs eventually owning their local franchises. Managing Emotion Effectively Keeps Business On Track. In turn, SHE reinvests its profits in new geographies or other disruptive enterprises.

Franchising 13

Franchising CEO GDP Entrepreneur 13

Harvard Business Review

JUNE 22, 2015

For instance, a 25% reduction in the time needed to deliver a product or service can double the productivity of labor and of working capital. Speeding up value delivery can result in remarkable performance improvements.

Supply Chain 8

Supply Chain Crisis Transportation Tactics 8

Harvard Business Review

APRIL 12, 2017

She worked her way up to manage several locations of a quick-serve restaurant. As manager, she has health insurance through her employer, but when she had a health emergency, she nonetheless ended up with $8,000 in medical debt due to deductibles and coverage gaps. It doesn’t have to be that way.

Health Care 12

Health Care Insurance Video Transportation 12

Harvard Business Review

SEPTEMBER 8, 2014

Hence, the customer-selection criteria of sales managers, and call patterns of sales reps, directly impact the first value-creation lever: which projects the firm invests in. Smartly reducing assets devoted to activities that earn less than their cost of capital requires good links with evolving market realities. (

Debt to Equity Ratio 10

Debt to Equity Ratio Cost of Capital Strategy Incentives 10

Harvard Business Review

MAY 8, 2012

Due to huge capital requirements, these investments could exert considerable pressure on the working capital of the carrier company. The vendors for telecom network management were paid only for the capacity utilized by Bharti Airtel, not for the equipment. In the U.S.,

Outsourcing 10

Outsourcing Wireless Telecommunications Core Competence 10